The most valuable tool we have to meet the world’s growing energy demand while reducing greenhouse gas production could be figuring out how to use energy more efficiently. Investing in energy efficiency can also save money, reduce pollution, encourage development and create new jobs. Yet, efficiency is often passed by in favor of more expensive energy solutions.

Exactly how much room for improvement there is in this department is the subject of the 2016 International Energy Efficiency Scorecard, published last month by the American Council for an Energy Efficient Economy. To compile the scorecard, researchers examined efficiency policy in 23 of the world’s top energy-consuming countries as well as actual energy-efficiency performance in the three largest energy use categories: buildings, industry and transportation. Germany came in first place with 73.5 out of 100 possible points. Italy and Japan tied for a close second. The United States came in eighth. Saudi Arabia was the lowest-scoring country at 15.5 points. Brazil and South Africa were also at the bottom.

“Our results indicate that there are substantial opportunities for improvement in all the economies evaluated in this report,” the authors noted.

A closer look reveals numerous policies and practices that are effectively increasing efficiency. Germany’s leadership, for example, is grounded in strong national policies and targets — most notably its National Action Plan on Energy Efficiency, which focuses on reducing energy demand in German buildings, establishing business models for energy efficiency and generating data consumers can use to make decisions regarding their energy use. The country also stood out as a leader in building efficiency, with national energy performance requirements for both new buildings and those undergoing major renovation backed by strong financial support. The reported also called out the United States, for its efficiency-promoting building codes as well as strong appliance and equipment standards.

Industry accounts for over half of the world’s total energy demand, and the report applauded Germany, Japan and Italy for encouraging industrial efficiency through a mix of regulatory measures, voluntary actions and financial incentives. Manufacturers in Germany, motivated by tax exemptions and other financial incentives, are voluntarily working to consume less energy and meet greenhouse gas emission reduction targets. Japan and Italy mandate energy efficiency and require large energy consuming companies to appoint energy managers and periodically audit and report on energy use. Germany and Japan have also set goals and provide financial incentives to encourage use of combined heat and power systems, which capture heat normally wasted in conventional power generation for use in industrial processes.

In general, most countries did not score as well in transportation as they did in industry, with many countries’ transportation systems reflecting heavier investments in roads than in public transit. The report called out Italy and Japan for practices that include stringent fuel economy requirements for new cars (in Italy’s case, part of a broader European Union initiative) and investments in public transit.

The report noted that many of the countries with the lowest scores in energy efficiency policy are also emerging economies with an increasing demand for energy. As these countries construct new buildings, develop their industries and design transportation systems, they have the amazing opportunity to include energy efficient best practices from the start. At the same time, the report called on more-developed countries to “lead by example” with even more ambitious energy-efficiency practices and policies.

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